Zacks Equity Research Highlights Key Stocks and Market Trends

Strategic Insights -

Retailers Family Dollar Stores and Bed Bath & Beyond reported positive quarterly results, with shares increasing by 5% and 20%, respectively. Family Dollar's sales jumped 9% year-over-year, driven by non-discretionary sales and consumers trading down to cheaper alternatives. Atheros Communications is expected to report Q1 results, with projected revenues of $80.4 million and non-GAAP EPS of $0.03.

Meanwhile, talks between Sun Microsystems and IBM Corp. broke down, with Sun seeking a higher price and guarantees to push the merger through any anti-trust investigation. The deal's failure was not unexpected, given the high price and anti-trust considerations.

Key Takeaways:

  • Family Dollar Stores, Inc. (FDO) reported strong fiscal second quarter results, with sales up 9% year-over-year and EPS up 33%.
  • Bed Bath & Beyond, Inc. (BBBY) shares are up 20% after reporting positive quarterly results.
  • Atheros Communications, Inc. (ATHR) is expected to report Q1 results, with projected revenues of $80.4 million and non-GAAP EPS of $0.03.
  • The talks between Sun Microsystems Inc. and IBM Corp. have ended, with Sun seeking a higher price and guarantees.
  • Family Dollar's management is driving store traffic by emphasizing low-cost merchandise in a convenient format.
  • Consumers are trading down to cheaper alternatives, benefiting Family Dollar's sales.
  • Atheros Communications' shares dropped nearly 5% after sell-side downgrades, but then bounced back over 16% before dipping again.

Statistics:

  • Family Dollar's sales increased by 9% year-over-year.
  • Bed Bath & Beyond's shares are up 20%.
  • Atheros Communications is expected to report Q1 revenues of $80.4 million.
  • Non-GAAP EPS are expected to be $0.03 for Atheros Communications.
  • IBM Corp.'s shares are down due to the failed deal with Sun Microsystems.

Sources:

  • http://www.profits.zacks.com/
  • http://at.zacks.com/?id=4579
  • http://at.zacks.com/?id=2649
  • http://at.zacks.com/?id=2677
  • http://at.zacks.com/?id=4580
  • http://www.zacks.com/performance